Assignment of Claims Act

Last Updated: Jun 6, 2019

Created By :

Last Edited By :

Created On :

The Assignment of Claims Act is a federal law that enables a company, or borrower, to assign to a beneficiary cash or another asset that is due or is expected to come due provided certain qualifying conditions are met.  For example, a borrower may assign to a lender certain "rights" related to their accounts receivable, such as the right to realize the economic value of that asset or the proceeds of that asset once the amount due is collected.